Ethereum Surges 5.63% to $2,700 as Institutions Buy

Ethereum has recently regained the $2,700 level, marking a 5.63% daily gain, a price point last seen in late February. This surge comes despite traditional investors selling off their holdings, as indicated by net outflows of $10.83 million from spot ETH ETFs over the past 24 hours. This divergence suggests that traditional investors may be securing profits after recent gains, creating room for a potentially stronger rally.

Institutional investors, however, have been actively purchasing Ethereum, contributing to the bullish momentum. Notably, Abraxas Capital acquired 33,482 ETH worth $84.7 million within the past 24 hours, and over the past week, they accumulated 211,030 ETH valued at $477.6 million. Such large-scale institutional purchases often instill confidence and help sustain rallies. If the net flow of spot ETH ETFs turns positive, it could reinforce the current upward movement, potentially pushing ETH above $3,000.

Spot traders currently maintain a neutral position in the market, indicating a level of balance despite the rising prices. Spot retail activity remains slightly upward-trending, with a 0.17% gain. However, exchange reserve data shows that ETH held on exchanges has dropped to 19.1 million, suggesting reduced sell pressure and strong demand. This gradual supply squeeze could further drive Ethereum's price upward.

The Fund Market Premium, which reflects institutional flows, remained mildly negative at -0.3. This indicates room for further growth, particularly if institutional players re-engage. Overall, current market dynamics suggest that Ethereum could rally further if institutional, traditional, and spot traders re-engage. With renewed participation, ETH has a strong chance of breaking above $3,000 in the near term.